ATION RECORDS ACT OF 1992 |
\104-10326-10077 _ |2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSIN

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ACTION: IMS/ESG (020) INFO: CIC/CEG, CIC/CEGLA, CIC/LA, DO/IRO, IMDORECORD,
LA/FIG, LA/FIGSc, LIMITED, MDSx, ODPD, ORMS/LA, FILE, C/LA (3/w)

98 6457370 ASP PAGE 004 IN 0457370
TOR: 061908% FEB 98 BUEN 55099

¥
SECRET 0619002 FER 98 STARF

CITE BUENOS AIRES 55099

TO: PRIORITY DIRECTOR.

FOR: LIMITED DISSEM IMS/ESG INFO DO/IRO, CHIEF/LA, LA/FIG, LA/FIGSC,
CIC/LA

SbUGS?T WNINTEL

SUBJECT : ) CONTINUED PROTECTION OF OUR USE OF COVER

REF: DIRECTOR 674771 98 0430861

TEXT:

1. ACTION REQUIRED: NONE, FYT ONLY /AND IN RESPONSE TO REF.
¢ —_
2 TRE REL

EASE OF INFORMATION WHICH OFFICIALLY RECOCNTZRS THE /
FACT OF STATE CO} B.WIGL. BE. A.DELICATE. ISSUE ‘ACROSS.:'THE._DO.,, AND
*- ALTHOUGH” DAMAGE ASSESSMENTS IN THE<gFK ASSASSINATION>RECORDS REVIEW
BOARD (ARRB) ARE LIMITED TO_ONLY fFOUR COUNTRIES-- CHE WORLD-WIDE USE
OF STATE COVER MEANS THE IMPLICATIONS WILL BE WIDELY FELT. IN THIS
SENSE IT IS ALMOST SELF-DEFEATING TO ARGUE FROM FOUR SPECIFIC CASES |
(MOSCOW, PARIS, MEXICO CITY, AND BUENOS AIRES) AND EXTRAPOLATE FOR U

THE WHOLE DDO. NEVERTHELESS, WE WILL ATTEMPT TO RESPOND TO REP FROM
THE BA PERSPECTIVE... we ee 2 eee : * =

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3. OFFICIAL CONFIRMATION OF CIA USE OF STATE COVER IN ARGENTINA
' (WILL PREJUDICE UNILATERAL OFFICERS’ COVER AND ACTIVITY, WHICH --AS IN
} IMOST STATIONS-- IS THE COVER AND ACTIVITY WHICH MATTERS THE MOST IN
: THAT THESE OFFICERS TEND TO HANDLE THE MOST SENSITIVE PENETRATIONS OF
'THE LOCAL GOVERNMENT. OUR UNILATERAL OFFICERS ALSO HANDLE STATION'S
jNON-OFFICIAL COVER (NOC) OFFICERS. THUS BY DEFINITION THE UNILATERAL
ACTIVITY CARRIED OUT BY THESE OFFICERS IS NON-COMPATIBLE, AND WOULD \
iCAUSE DAMAGE TO STATION’S RELATIONS WITH OUR VARIOUS LIAISON ;
1tSERVICES. CURRENTLY, STATION IS ENJOYING A PERIOD WHEREIN --AS A i
RESULT OF PRESIDENT CLINTON'S VISIT HERE IN LATE 1997, AND THE CHIEF ;
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OF THE PRINCIPAL LIAISON SERVICE'S VISIT TO READQUARTERS IN NOV 97--

j LIAISON HAS DECIDED TO RE-ORTENT ITS ACTIVITIES AWAY FROM SMALL ,
LIAISON RELATIONSHIPS IT HAS WITH VARIOUS EUROPEAN SERVICES AND MORE |
TOWARDS CIA. THTS STRATEGIC SHIFT, WHICH COULD HAVE LONG-TERM p
BENEFITS..POR—CIA,—WILL._BE DASHED—WHEN- LEATSON_SEES THAT WE RUN

_ NON= COMPATIBLE OPERATIONS IN BUENOS AIRES. THE TRUST THAT TAKES AN

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ENDLESS_NUMBER_OF-MRI BE GONE WITH THE
PUBLICATION LOCALLY CONFIRMING OUR USE OF STATE COVER.

4. MOREOVER, BILATERAL U.S.-ARGENTINE RELATIONS HAVE NEVER BEEN '
CLOSER; THESE WOULD BE TARNISHED, NOT IRREPARABLY BY ANY MEANS, BUT
UNNECESSARILY, BY OFFICIAL CONFIRMATION OF CIA USE OF STATE COVER.
HISTORICALLY RELATIONS WITH ARGENTINA HAVE BEEN STRAINED

DEMOCRATIC ORBIT. CURIOUSLY, THE CLOSE POLITICAL RELATIONS AND OUR
STEADILY-IMPROVING RELATIONS WITH LIAISON MEANS THAT BOTH PARTIES
| EMBASSY DIPLOMATS AND SENIOR LIAISON OFFICERS-- WONDER WHY WE NEED
TO" SPY HERE IF WE CAN GET VIRTUALLY ANYTHING WE ASK FOR FROM LIAISON |
OR sFROM ARGENTINE GOVERNMENT OFFICIALS. INDEED, IN THIS RELATIVELY \
|
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FREE-MARKET REFORMS HAVE PUSHED ARGENTINA SQUARELY INTO THE
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OPEN, COMFORTABLE ENVIRONMENT, AN INDICATION THAT STATION WAS WORKING
ON INCOMPATIBLE LOCAL TARGETS WOULD BE ESPECIALLY DAMAGING.

5. AT THE RISK OF BORING THE READER WITH DETAIL, EMBASSY BUENOS
ATRES IS SO OPEN A WORKPLACE THAT THERE IS NO REAL CLEARED ACCESS
AREA (CAA), BUT RATHER A "HYBRID" CAA, TO USE THE RSO’S PHRASE. THIS
MEANS THAT FSN’S HAVE LONG HAD OFFICES ON THE THIRD FLOOR, WHERE THE
|» SEXECUTIVE>O#FICES AND REPORTING OFFICES (INCLUDING STATION) ARE
| LOCATED. NEEDLESS TO SAY, STATION IS NOT COMFORTABLE WITH THE LOCAL
CONFIGURATION OF OFFICES, SINCE IT TENDS TO IDENTIFY OUR UNILATERAL
OFFICERS. IN THIS ENVIRONMENT, WHERE EMBASSY OFFICERS DO NOT HAVE A
FULL APPRECIATION OF THE ROLE/NEED FOR INTELLIGENCE IN SUCH AN OPEN,
FRIENDLY SOCIETY, OFFICIAL CONFIRMATION OF CIA’S USE OF STATE COVER
WOULD ONLY REAFFIRM THEIR POINT OF VIEW. OUR FEW UNILATERAL OFFICERS
WOULD ESSENTIALLY THEN BE DECLARED. STATION WOULD HAVE TO ATTEMPT TO
CHANGE OUR COVER PROFILE BY OBTAINING MORE NOC OFFICERS WHILE
REDUCING THE NUMBER OF UNILATERAL C/O’'S. AS HEADQUARTERS IS AWARE, "
UNDER CURRENT CIRCUMSTANCES THERE ARE FEW NOCS, AND THE SELECTION AND
TRAINING OF NEW ONES TAKES YEARS AND IS EXPENSIVE. IN THIS SCENARIO,
BUENOS AIRES WOULD NEVER RECEIVE ENOUGH PRIORITY TO WARRANT SENDING
THREE NOC OFFICERS TO REPLACE THE THREE UNILATERAL SLOTS WE CURRENTLY
HAVE . THE END RESULT WOULD BE THAT WE WOULD COLLECT VERY LITTLE
INTELLIGENCE ON MAJOR PORTIONS OF OUR OPERATING DIRECTIVE (OD) .
SPECIFICALLY, INTERNAL POLITICAL REPORTING, WHICH IS A FIRST PRIORITY !
OBJECTIVE, WOULD BE ZEROED OUT, AND REPORTING ON THE WP AND ES
TARGETS, BOTH SECOND PRIORITY OBJECTIVES, WOULD BE NON-EXISTENT.

THIS WOULD BE A SERIOUS LOSS TO THE USG, SINCE OUR WP REPORTING HAS
HISTORICALLY BEEN THE ONLY MEANS OF LEARNING TO WHAT EXTENT THE |
ARGENTINES ARE RESPECTING INTERNATIONAL AGREEMENTS AND NOT REBUILDING
THEIR MISSILE PROGRAM. ON THE ES TARGET, WE WOULD LOSE SIGNIFICANT
REPORTING ON REGIONAL ECONOMIC ACTIVITY AND THE IMPACT OF THE ASIAN
FINANCIAL CRISIS IN THE AMERICAS. PERHAPS MOST IMPORTANTLY, HOWEVER,
WE WOULD LOSE THE TRUST OF KEY HOST GOVERNMENT OFFICIALS AND OF SOME /
SENIOR LIAISON OFFICIALS, WITH THE PREDICTABLE RESULT THAT IT WOULD |

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TAKE YEARS TO REBUILD THE RELATIONSHIP.

6. IN TERMS OF A SECURITY THREAT, BUENOS AIRES REMAINS THE ONLY
CAPITAL IN THE WESTERN HEMISPHERE THAT HAS BEEN THE VICTIM OF TWO
HIIZBALLAH BOMBINGS, KILLING HUNDREDS OF PEOPLE. A TERRORIST
INFRASTRUCTURE” EXTSTS~IN-THE TRI BORDER AREA OF ARGENTINA, BRAZIL-
AND PARAGUAY, WITH LTIES INTO BUERNOS..ALIRES AS WAS —PROVEN-TWICE... TWO _ }

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OR THREE—TIMES PER YEAR/ STATION OBTATNS REPORTING” OF ~ANOTHER-~THREAT_
ON LOCAL JEWISH OR U.S. INTERESTS, INCLUDING THTs EMBASSY. IN THIS

ENVIRONMENT, PUBLICATION OF CIA USE OF OFFICTAL COVER MIGHT ENDANGER

PEOPLES’ LIVES, SPECIFICALLY STATION OFFICERS’. HAMAS, GAMA‘AT AL
TSLAMIYAH, AND HIZBALLAH ARE ALL ACTIVE LOCALLY. IN ADDITION,
#RCENTINA HAS AN ARAB POPULATION OF OVER 700,000. IN THE DIPLOMATIC
WORLD, THE CUBAN EMBASSY IS LARGE AND ACTIVE; WE ARE CERTAIN THEY
WOULD SEEK TO TAKE ADVANTAGE OF ANY U.S. COVER GAPS. STATION. HAS NOT
COVER GAPS IN THE PAST, AND THUS ANY ONE oF THIS

HAD_ANY=CTGHT EECA

MAGNITUDE WOULD HAVE A LARGE, IMPACT. ee venue
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7. STATION HOPES THE ABOVE IS USEFUL IN MARSHALING ARGUMENTS

AGAINST THE PUBLICATION OF THE ARRB RECORDS.
DECL ON: Xl. CL REASON: L-5(C) Cy BY: 0705909

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